Which of the following best describes a double-net lease?

A double-net lease is a type of lease agreement in which the tenant is responsible for paying two specific types of expenses in addition to the base rent. The two expenses typically associated with a double-net lease are property taxes and property insurance. The landlord usually retains responsibility for structural repairs and maintenance of the property.

This arrangement benefits landlords by reducing their direct operating costs, while tenants generally favor it because they may get a lower rent in exchange for taking on some of the costs associated with the property. Understanding the division of responsibilities in leasing agreements is crucial for both landlords and tenants, as it impacts cash flow and overall financial planning for either party involved in the lease.